twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Alt-A Outlook Ugly

Moody's warns about losses on 2006, 2007 vintages

January 23, 2009

By staff

Deteriorating performance on Alt-A loans is expected to push losses on the least seasoned residential mortgage-backed securities to nearly one-quarter, according to a new ratings agency report.

Last year, serious delinquency on Alt-A loans backing securitizations from 2006 and 2007 deteriorated substantially, Moody's Investors Service said in an announcement yesterday. Prepayment rates, meanwhile, declined to unprecedented levels.

Cumulative losses -- which had typically been below 1 percent on earlier Alt-A transactions -- were many times higher last year.

The poor performance reflected a deterioration in the underwriting requirements for the most recent Alt-A originations. Moody's noted that many loans were labeled Alt-A even though they were subprime. In addition, an increasing share of Alt-A loans included weaker documentation, non-owner occupied properties and two- to four-unit properties.

Moody's projects that cumulative losses will reach around 20 percent on 2006 vintage Alt-A RMBS and 24 percent on 2007 issuances.

"Average losses will generally be lower for loan securitizations made early in 2006 and become progressively higher moving through the two-year period," Moody's said. "The best-performing pools from 2006 have average projected losses of around 7.5 percent, while the worst performers from 2007 average around 29 percent projected losses."

Moody's speculated that subordinate securities are likely to be completely written off and said it expects to downgrade them to Ca or C -- a level where recoveries are expected to range between less than 25 percent to 75 percent.

But government housing-market stabilization initiatives could impact actual losses.

While around 90 percent of Alt-A RMBS rated by Moody's were downgraded last year, the New York-based ratings agency said it will again review its ratings on 2006 and 2007 vintages in light of its updated outlook. Transactions from 2005 will also be reviewed.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders